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A COMPARATIVE STUDY ON SALES PROMOTION PRACTICES OF BRANDED

APPAREL OUTLETS IN VISAKHAPATNAM CITY

Preprint · December 2019

DOI: 10.13140/RG.2.2.11792.76805

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International Journal of Advanced in Management, Technology and Engineering Sciences ISSN NO : 2249-7455

A COMPARATIVE STUDY ON SALES PROMOTION PRACTICES OF

BRANDED APPAREL OUTLETS IN VISAKHAPATNAM CITY

[1] V V DEVI PRASAD KOTNI

Assistant professor
Department of Management Studies
Gayatri Vidya Parishad College for Degree and PG Courses (A)
Visakhapatnam

[2] V.L.K. RATNA NAVEEN (PG161701167)

Student, MBA Program (2016-18)
Department of Management Studies
Gayatri Vidya Parishad College for Degree and PG Courses (A)
Visakhapatnam

Purpose of study: The retail store is the place where the customers take a decision on the
purchase of the products offered by the retailer. The store also influences the perception that
customers form in their minds about the store, the products, services and staff. From the
management’s point of view, operations of the store and a major element of the cost. The
Objectives of the study are to study the concept of sales promotion in retailing, to study the
shopping behaviour of the apparel customers, to analyse the sales promotion practices of
Max Fashion retail outlets, to find out the impact of sales promotion on customer purchase
behaviour and to offer recommendations for effective sales promotion and thereby better
business performance.
Design/methodology/approach: A structured questionnaire consisting of 20 questions was
prepared, distributed to 100 customers by using purposive sampling method. The study was
conducted in Visakhapatnam city and considered four major branded apparel stores i.e.
Reliance Trends, Max Fashion, Pantaloons and Vizag Central.
Major Results: It was found in the study that 66% of the customers agreed that Max Fashion
is good at reasonable price, 71% of the customer opined that Reliance Trends is good at best
offers, 56% of the respondents said that Vizag Central is good at best visual merchandising
practices.
Managerial Implications: It is suggested to promote the outlet in the media like newspapers,
hoardings and also through digital media. The details regarding promotional offers, new
arrivals must be communicated to the customers well in advance.

INTRODUCTION

India has some 12 million retail outlets, but many of these act merely as subsistence providers
for their owners and survive on a cost structure where labor and land is assumed to be free
and taxes nil. Compare this with the global retail industry, which is one of the world’s largest
organized employers, is at the cutting edge of technology, and which leverages scale and
scope to offer value-added services to its customers. However, only recently has there been
an awakening in this sector, with more organized retailers starting to make an impact. The

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liberalization of the consumer goods industry, initiated in the mid-80s and accelerated
through the 90s has begun to impact the structure and conduct of the retail industry. Backed
by changing consumer trends and metrics, liberalization in mindsets driven by media, new
opportunities and increasing wealth, retailing in India, presents a vast opportunity for a
variety of businesses - real estate, store design & operations, visual merchandising logistics
and communications, B2C service providers, and FMCG companies who can add to their
offers by partnering this revolution.

Sales promotions are short-term incentives to encourage the purchase or sale of a product or
service. Sales promotion includes several communications activities that attempt to provide
added value or incentives to consumers, wholesalers, retailers, or other organizational
customers to stimulate immediate sales. These efforts can attempt to stimulate product
interest, trial, or purchase. Examples of devices used in sales promotion include coupons,
samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.

The reason sales promotions are gaining popularity is due to the fact that product and sales
management are very confident in their ability to handle the techniques of sales promotion.
Other forms of integrated marketing communication tools need to go through a lot of thought
and internal debates before funds are allocated or decisions are arrived at. Product managers
also are more in control of the determination and implementation of sales promotional
activities. They have a freehand when it comes to what sales strategies to use. The
importance of sales promotions as an integrated marketing communications tool could be
attributed to the increase in number of specialist sales promotions agencies operating in
certain places. In the past, sales promotion was viewed as part of other marketing
communications techniques. Today, it is one of the stand-alone effective marketing tools.

The retail store is the place where the customers take a decision on the purchase of the
products offered by the retailer. The store also influences the perception that customers form
in their minds about the store, the products, services and staff. From the management’s point
of view, operations of the store and a major element of the cost. As a consequence, the store
itself becomes a critical asset of the retail business and it is imperative that the operations are
managed well to achieve and sustain customer satisfaction and be cost effective. Sales
Promotion is needed for retailers as it gives local personality, improvement in sales, quick
sales, maintains of possible retail price, increase sales turnover, maintain existing market and
explores new market.

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REVIEW OF LITERATURE ON SALES PROMOTION

According to Zallocco and Kincaid1 (2008), promotion is the deliberate attempt on the part of
the individual business or other institution to communicate the appropriate information in a
manner persuasive enough to include the kind of acceptable response desired. Brussel (1991)
described that sale promotion consists of those marketing activities other than advertising
publicity and personal selling that stimulate customer purchasing. William and Ferrell 2
(1994) defined that sales promotion is an activity that act as a direct inducement, offering
added value or incentive for a product to resellers, salesperson or customers.

The Advertising Standard Authority’s (ASA) code of sales promotion defines sales
promotion as: Those marketing techniques which are used, usually on a temporary basis to
make goods and services more attractive to the consumers by providing some additional
benefit whether in cash or in kind. Sale promotion consists of a set of various and different
and often short period motive tools which is used for consumer’s or buyer’s provocation to
buy more and faster 3 (Neslin, 2002). According to Joncos 4 (1990) sales promotion is an
effective way of competitive retaliation rather than marketing activities.

Mercer (2002) defined promotion as it is a technique which mainly used by marketer on a

temporary basis to create an attractive goods or services to encourage the customers to
purchase goods or services in a specific time period by providing more benefits. Belch and
Belch (1996) defined sales promotions as direct encouragements provide an additional
stimulant for the products to be sold or distributed in a short period of time. Both Kotler 5
(2002) and Totten and Block 6 (1994) defined sales promotion as any activity which obtained
by the producers usually short term designed to encourage quicker or greater amount trade
retailer or wholesaler as well as influence individual to buy the product.

1
Zallocco, perreult and Kincaid (2008), Promotion, Persuasive Communication in Marketing (Irwin-Dorsey
Limited, White, Senecal, Morgan, Blackwell & Miniard).
2
William, Ferrel, Pride M. (1994), Marketing Research (New York, McCarthy &Engle et al 1991)
3
Neslin, Scott (2002), “Sales Promotion" Marketing Science Institute (MSI)”, First Edition.
4
Joncos L. (1990), A retailer promotion policy model considering promotion signal sensitivity. Marketing
Science; 12(4):339-356.
5
Kotler P. (2003), Marketing Management. Delhi: Pearson Education. Kumar SR (2007). Marketing and
Branding, The Indian Scenario. Dorling Kindersley, Delhi.
6
Totten, J.C. and Block, M.P. (1994), Analyzing Sales Promotion Text & Cases: How to Profit from the New
Power of Promotion Marketing, 2nd ed., USA: The Dartnell Corporation

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According to Perreault et al 7 (2006) opined sales promotion defined as a communicating

information within two parties, seller and potential buyers, which is obtained to effect
customers decisions. Brassington and Pettitt 8 (2000) provide a new definition for sales
promotion as “a range of marketing techniques designed within a strategic marketing
framework to add extra value to a product or service over and above the “normal” offering in
order to achieve specific sales and marketing objectives.

Montaner9 (2006) indicated that there are some factors can induce customers to buy more or
less, depends on his economic and hedonistic situation as well as his characteristics. Zallocco
et al10 (2008) defined sales promotion as it is an intentional effort from marketers to deliver
the appropriate information in suitable inducement way to get the desired acceptable
responses from the customers. Some researchers have different views that promotion is an
expensive tool and it may affect negatively on retailers profits (Walters and Mackenzie,
1988)11. Martinez and Montaner 12 (2006) indicated that there are some factors can induce
customers to buy more or less, depends on his economic and hedonistic situation as well as
his characteristics.

Cotton and Babb 13 (1978) another trend of sales promotion used to increase consumer
purchases which known as in-store promotion, it is more effective during the period when a
deal is going on. Walters and Mackenzie 14 (1988) some researchers have different views that
promotion is an expensive tool and it may affect negatively on retailers profits. Martinez and

Robinson and Carmack15 (1997) opined that coupons have been existed to produce product
trial. Gilbert and Jackaria16 (2002) they found that coupon promotions have no significant

7
Perreault William D, Cannon Joseph P and McCarthy, Jerome E. (2008), “Marketing: A marketing strategic
planning approach”, McGraw-Hill Higher Education 2008), “Essentials of Marketing”, McGraw-Hill Higher
Education.
8
Brassington F, Pettitt S. (2000). Sales Promotion In: Principles of Marketing. 2nd ed, FT Prentice Hall,
Harlow. pp. 642-685.
9
Martínez, Eva and Teresa Montaner. (2006), “The Effect of Consumer's Psychographic Variables Upon
DealProneness”, Journal of Retailing and Consumer Services, 13(3), pp.157-168.
10
Zallocco, perreult and Kincaid.(2008), Promotion, Persuasive Communication in Marketing (Irwin-Dorsey
Limited, White, Senecal, Morgan, Blackwell & Miniard).
11
Walters, Rockney G. and Scott B. MacKenzie. (1988), “A Structural Equations Analysis of the Impact of
Price Promotions on Store Performance”, Journal of Marketing Research, 25(1), pp. 51-63
12
Martínez, Eva and Teresa Montaner. (2006), “The Effect of Consumer's Psychographic Variables Upon
DealProneness”, Journal of Retailing and Consumer Services, 13(3), pp.157-168.
13
Cotton, B. C, and Emerson M. Babb. (1978), “Consumer Response to Promotional Deals”, Journal of
Marketing, 42(3), pp. 109-113.
14
Walters, Rockney G. and Scott B. MacKenzie. (1988), “A Structural Equations Analysis of the Impact of
Price Promotions on Store Performance”, Journal of Marketing Research, 25(1), pp. 51-63.
15
Robinson, W.A., & Carmack, L.L. (1997), Best Sales Promotions, (6th Volume). New York: NTC Business
Books.

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effect on volume of product purchased by a consumer. Cook17 (2003) customers can easily be
convinced with the coupons technique since it is very useful tool for trial buying, and it
considered as a good way to be used to induce customers brand switching.

OBJECTIVES OF THE STUDY

 To study the concept of sales promotion in retailing.

 To study the shopping behaviour of the apparel customers.
 To analyse the sales promotion practices of apparel retail outlets.
 To find out the impact of sales promotion on customer purchase behaviour.
 To offer recommendations for effective sales promotion and thereby better business
performance.
RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. In it, step-by-
step Research Methodology is a way to systematically solve the research problem. In it, step-
by-step methods are followed to solve a particular problem. It refers to a search for
knowledge. It can also be defined as a scientific and systematic search for pertinent
information on a specific topic. In fact, research is an art of scientific investigation.

The methodology adopted for the present study was focus discussion, interview and close
observation through in-house study. Since the project is based on action research it was
necessary to build rapport to collect maximum information from the Customers. Hence the
research spent considerable time with the people who reside in city. The main focus was to
do with the assessing the satisfaction level of customer and explore the possibility of more
sound arrangement of disseminating outlook information system.

Data Source:

Primary data: Primary data is the new or fresh data collected from the respondents through
direct interview using a pre-structured questionnaire..
 Personal Interview
 Close observation
 Survey conduction

16
Gilbert, D.C. and Jackaria, N. (2002), “The efficacy of sales promotions in UK super markets: a consumer
view”, International Journal of Retail & Distribution Management, Vol. 30No. 6, pp. 315-22.Journal of Product
& Brand Management, Vol. 13 No. 5, pp. 303
17
Cook, A. (2003), How to cash in on the coupon craze. Incentive Business. Jun/Jul: 3

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Secondary data: Secondary data may be obtained from many sources, including
literature, industry surveys, compilations from computerized databases and information
systems, and computerized or mathematical models of environmental processes. The
Secondary Data was collected by using the following methods –

 Internet
 Books
 Company website
Study design:

Data Collection Instrument: Structured questionnaire

Sample size: 100

Sampling technique: Purposive Sampling

Study area: Visakhapatnam

Retail Outlets: Reliance Trends, Max Fashion, Pantaloons, Vizag Central.

Study period: May 2017 to July 2017

DATA ANALYSIS AND INTERPRETATION

[1] Reasonable prices

Table 1: Reasonable Prices

Outlets No of respondents % of respondents
Max Fashion 14 14%
Reliance Trends 18 18%
Vizag Central 2 2%
Pantaloons 66 66%
Total 100 100%

Interpretation: from the table 1, it can be found that the 66% of the respondents have
concluded that Max show room provides its apparels in a reasonable price, 18% respondents
have agreed for Reliance Trends provides reasonable price, 14% for Max Fashion and lastly
only 2% for Vizag central. So, Max Fashion have to make its price reasonable to its
customers to retain them instead of shifting to its competitors.

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[2] Offers & discounts:

Table 2: Offers & discounts

Outlets No of respondents % of respondents
Max Fashion 9 9%
Reliance Trends 71 71%
Vizag Central 6 6%
Pantaloons 14 14%
Total 100 100%

Interpretation: From the table 2, it can be found that the highest score of respondents were
for Reliance Trends ie;71% of respondents and the rest have got similar score i.e.; Max with
14% , Max Fashion with 9% and Vizag central with 6%. . The maximum respondents
selected reliance trends as the best giving offers and discounts and Max Fashion give less
frequent of offers and discounts.

[3] Visual Merchandising:

Table 3: Visual Merchandising

Outlets No of respondents % of respondents
Max Fashion 33 33%
Reliance Trends 9 9%
Vizag Central 56 56%
Pantaloons 2 2%
Total 100 100%

Interpretation: From the table 3, As 56% of the respondents voted for Vizag Central it means
compared to other outlets like Max Fashion, Reliance trends and max it is attractive to the
customer. The next in the line is Max Fashion with 33% , reliance trends with 9% and
Pantaloons with 2% for their visual merchandising. It can be known that Vizag Central good
at visual merchandising.

[4] In-store communication:

Table 4: In-store communication

Outlets No of respondents % of respondents
Max Fashion 65 65%
Reliance Trends 21 21%
Vizag Central 11 11%
Pantaloons 3 3%

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Total 100 100%

Interpretation: From the table 4, it can be noticed that the in store communication flow is
good according to the 65% of respondents maintained in Max Fashion, where as 21%
selected reliance trends, 11% with vizag central and only 3% with Pantaloons. So the in store
communication is comparatively good compared to its competitors.

[5] Advertisements:

Table 5: Advertisements
Outlets No of respondents % of respondents
Max Fashion 47 47%
Reliance Trends 7 7%
Vizag Central 43 43%
Pantaloons 3 3%
Total 100 100%

Interpretation: From the table 5, it can be found that 47% of respondents identified Max
Fashion as giving more advertisements, even 43% of the respondents identified Vizag Central
as performing its advertisements actively. As there is not much difference between Max
Fashion and its competitor Vizag Central it should improve on its promotional activities for
attracting more customers.

FINDINGS

1. It is identified that the apparel stores are regularly visited by 69% of male and 39% of
female respondents.
2. The maximum customers visiting the apparel stores are between 18 – 25 years age
group (55%) and minimum customers visiting are the age group of above 50 years
(3%).
3. Most of the customers (49%) visiting the apparel stores are having the monthly
income less than Rs.10,000/- and most of the customers visiting the store are students
46% and employees 43%.
4. The apparel stores are been visited by 52% of customers spend amount for shopping
ranges between Rs.2000/- and Rs.5000/-.
5. Out of total respondents, it was observed that 33% of the customers visit the apparel
stores on specific occasion, 29% of the customer visit on weekends, 33% of the

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customer visit regularly and 5% of the customers visit on week days.

6. The sources of information for customers about the apparel stores, 37% of the
customers visit by mouth talk of friends and those are previous loyal customers of the
store, 33% of customers who got information by hoarding, 25% of customers by the
advertisement in news paper.
7. The highest percentage of respondents (48%) preferred Newspaper will be the best
media for getting information. The next rating is to Digital Media with 39%,
Hoarding preferred by 11% and Radio by 2% of the respondents.

MAJOR OBSERVATIONS

1. It was found that 66% of the respondents have concluded that Max Fashion provides
its apparels within a reasonable price, 18% respondents have agreed that Reliance
Trends provides reasonable price, 14% agreed that Max Fashion provides least price
and lastly only 2% agreed for Vizag Central.
2. It was identified from the study that 71% of respondents agreed that Reliance Trends
is giving best offers in the Visakhapatnam Apparel market, 14% respondents agreed
that Pantaloons is giving best offers, 9% agreed for Max Fashion and 6% agreed that
Vizag Central is giving best offers for the apparel customers.
3. The Visual Merchandising Practices of the apparel outlets were also evaluated in this
study, where Vizag Central was known for its best visual merchandising practices as
per customer response (56%), after that, 33% of customers agreed for Max Fashion,
Reliance Trends and Pantaloons were also known for their visual merchandising
practices by 9% and 2% customers respectively.
4. The in-store communication is good in Max Fashion according to the 65% of
respondents, whereas 21% of respondents said about reliance trends about in-store
communication, 11% said Vizag Central is good at in-store communication and only
3% said Vizag Central is good at in-store communication.
5. Regarding the advertisements given by the retail outlets, 47% of respondents
identified that Max Fashion as giving more advertisements and 43% of the
respondents identified that Vizag Central is providing its advertisements actively. The
respondents about 7% and another 3% opined that Reliance Trends and Pantaloons
are good at promoting their outlets through Advertisements.

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SUGGESTIONS

1. It is suggested to promote the outlet in the media like newspapers, hoardings and also
through digital media. The details regarding promotional offers, new arrivals must be
communicated to the customers well in advance.
2. Max Fashion have to concentrate on building brand image, Quality and Quantity, and
pricing for a product instead of its promotional activities and displaying the product in
the showroom.
3. Fashion have to make its price reasonable to its customers to retain them instead of
shifting to its competitors.
4. The outlet should provide good qualitative and quantitative merchandise, less price
merchandise at the same time the outlet should maintain its brand image at very high
level.
5. The store should maintain pleasant music, good arrangement of the products, good
maintenance of showroom and the store maintenance should be good.

CONCLUSION
Out of total respondents, it was observed that 33% of the customers visit the apparel stores on
specific occasion, 29% of the customer visit on weekends, 33% of the customer visit
regularly and 5% of the customers visit on week days. The sources of information for
customers about the outlet, 37% of the customers visit by mouth talk of friends and those are
previous loyal customers of the apparel stores, 33% of customers who got information by
hoarding, 25% of customers by the advertisement in news paper.
It is suggested to promote the outlet in the media like newspapers, hoardings and also through
digital media. The details regarding promotional offers, new arrivals must be communicated
to the customers well in advance. The apparel stores have to concentrate on building brand
image, Quality and Quantity, and pricing for a product instead of its promotional activities
and displaying the product in the showroom.
LIMITATIONS OF THE STUDY

 The results of the study cannot to be generalized as the data collected for the study
limited to Visakhapatnam only.
 Since the data was collected from the respondents through questionnaire, the
information may be biased depending upon the opinions of the respondents at that
point of time.

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 Respondent attitude may change time to time

SCOPE OF THE STUDY

 This comparative study of the retail sales promotion is limited to the Visakhapatnam
retail market only; the same studies can be conducted in other retail markets also.
 Scope of the study is limited to retail sales promotions only; the same study can be
conducted in product sales promotions also.
 Scope of the study is limited apparel retail outlets only; the same study can be
conducted in other retail outlets like FMCG, Consumer Durables etc.

REFERENCES

JOURNALS:
1. Zallocco, perreult and Kincaid (2008), Promotion, Persuasive Communication in
Marketing (Irwin-Dorsey Limited, White, Senecal, Morgan, Blackwell & Miniard).
2. William, Ferrel, Pride M. (1994), Marketing Research (New York, McCarthy &Engle
et al 1991)
3. Neslin, Scott (2002), “Sales Promotion" Marketing Science Institute (MSI)”, First
Edition.
4. Joncos L. (1990), A retailer promotion policy model considering promotion signal
sensitivity. Marketing Science; 12(4):339-356.
5. Kotler P. (2003), Marketing Management. Delhi: Pearson Education. Kumar SR
(2007). Marketing and Branding, The Indian Scenario. Dorling Kindersley, Delhi.
6. Totten, J.C. and Block, M.P. (1994), Analyzing Sales Promotion Text & Cases: How
to Profit from the New Power of Promotion Marketing, 2nd ed., USA: The Dartnell
Corporation
7. Perreault William D, Cannon Joseph P and McCarthy, Jerome E. (2008), “Marketing:
A marketing strategic planning approach”, McGraw-Hill Higher Education 2008),
“Essentials of Marketing”, McGraw-Hill Higher Education.
8. Brassington F, Pettitt S. (2000). Sales Promotion In: Principles of Marketing. 2nd ed,
FT Prentice Hall, Harlow. pp. 642-685.
9. Martínez, Eva and Teresa Montaner. (2006), “The Effect of Consumer's
Psychographic Variables Upon DealProneness”, Journal of Retailing and Consumer
Services, 13(3), pp.157-168.
10. Zallocco, perreult and Kincaid.(2008), Promotion, Persuasive Communication in
Marketing (Irwin-Dorsey Limited, White, Senecal, Morgan, Blackwell & Miniard).
11. Walters, Rockney G. and Scott B. MacKenzie. (1988), “A Structural Equations
Analysis of the Impact of Price Promotions on Store Performance”, Journal of
Marketing Research, 25(1), pp. 51-63
12. Martínez, Eva and Teresa Montaner. (2006), “The Effect of Consumer's
Psychographic Variables Upon DealProneness”, Journal of Retailing and Consumer
Services, 13(3), pp.157-168.
13. Cotton, B. C, and Emerson M. Babb. (1978), “Consumer Response to Promotional
Deals”, Journal of Marketing, 42(3), pp. 109-113.

Volume VIII, Issue I, JANUARY/2018 Page No: 968

International Journal of Advanced in Management, Technology and Engineering Sciences ISSN NO : 2249-7455

14. Walters, Rockney G. and Scott B. MacKenzie. (1988), “A Structural Equations

Analysis of the Impact of Price Promotions on Store Performance”, Journal of
Marketing Research, 25(1), pp. 51-63.
15. Robinson, W.A., & Carmack, L.L. (1997), Best Sales Promotions, (6th Volume). New
York: NTC Business Books.
16. Gilbert, D.C. and Jackaria, N. (2002), “The efficacy of sales promotions in UK super
markets: a consumer view”, International Journal of Retail & Distribution
Management, Vol. 30No. 6, pp. 315-22.Journal of Product & Brand Management,
Vol. 13 No. 5, pp. 303
17. Cook, A. (2003), How to cash in on the coupon craze. Incentive Business. Jun/Jul: 3

Volume VIII, Issue I, JANUARY/2018 Page No: 969

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